The association for America’s aerospace and defense have already stated the need to modernize the armed forces by keeping defense budgets of recent years to help maintain America’s military technological superiority.
By sustaining the high defense budget, the aerospace and defense industry would continue to be a leading manufacturing exporter and job provider for more than 2 million “middle class” jobs and 30,000 suppliers in 50 states.
While investors are nervous about Obama, we’re still in a war, and the war isn’t over yet – defense spending is going to continue in the near-term. The 2009 fiscal year budget for the Department of Defense has already been signed by Bush for $615.5 billion, and it includes stipends for Iraq and Afghanistan.
Interestingly, according to Investment News, PowerShares Aerospace & Defense (PPA) is the top ETF ranked by three year asset growth, gaining 3,083% in assets. The three year total return is -1.2%. The ETF is currently down 39.6% year-to-date.